‘Largest trade deal in history’: Trump touts $550 bn Japan pact, car tariff terms unclear

US President Donald Trump announced a sweeping trade deal with Japan on Tuesday, setting tariffs on Japanese imports at 15% and securing a $550 billion investment into the United States.

Trump unveiled the agreement during a White House event, calling it “the largest trade deal in history.” He said Japan would open its markets to U.S. automobiles and agricultural imports, though specific terms remain unclear.

“They had their top people here and we worked on it long and hard,” Trump said. “It’s a great deal for everybody.”

The preliminary agreement lacks key details, including whether Japanese cars and parts will be exempt from Trump’s broader 25% auto tariff plan. Trump’s past trade announcements have often been followed by delayed disclosures.

The announcement triggered market movement: the yen briefly strengthened, and both Japanese and U.S. stocks ticked higher in response.

The Japanese delegation was led by chief trade negotiator Ryosei Akazawa, who met with U.S. Treasury Secretary Scott Bessent earlier Tuesday. “They’ve really come to the table,” Bessent said on Fox Business.

Trump also floated a forthcoming joint venture with Japan to export liquefied natural gas from Alaska, though no timeline was provided.

The deal comes just hours after Trump imposed a 19% tariff on exports from the Philippines and days before his Aug. 1 deadline to slap reciprocal tariffs on dozens of trading partners. Talks with the EU and India continue, but Trump said roughly 150 smaller nations will face blanket tariffs of 10–15%.

Automobiles remain a central friction point. The U.S. wants Japan to accept vehicles built to American safety standards, while Tokyo seeks exemptions from existing levies. Car giants like Toyota and Isuzu have recently committed hundreds of millions to U.S. production.

Trump deals so far
Japan

• Tariffs: 15% on imports; threat of 25% if talks failed
• Investment: $550B in U.S., with U.S. to receive 90% of profits (per Trump)
• Market Access: Expanded access for U.S. cars, trucks, rice, and agriculture
• Context: Most significant deal; Japan was U.S.’s 5th-largest trade partner in 2024

United Kingdom

• Tariffs: 10% reciprocal tariff; 25% auto tariff cut to 10% for first 100K vehicles
• Metals: Steel and aluminum tariffs eliminated
• Status: Framework deal; many issues unresolved

Vietnam

• Tariffs: Raised from 10% to 20%; 40% on transshipped goods
• Concessions: Some barriers eased, but few details; U.S. seen as major winner

China

• Tariffs: 20% on fentanyl, 10% reciprocal; pause on new tariffs for 90 days
• Status: Truce, not full deal; tariff threats remain up to 145%

Indonesia

• Tariffs: 19% on imports, 40% on transshipped goods
• U.S. Exports: 99% exempt from Indonesian duties
• Market Access: Gains for U.S. digital services and agriculture

Philippines

• Tariffs: 19% on imports
• U.S. Exports: All Philippine duties eliminated

Others

• EU: Framework deal possibly near (10% tariff baseline)
• India: Talks stalling over agriculture and dairy
• (Canada, Mexico, Russia): No final deals yet, but under pressure from new tariff threats